Metalla Royalty & Streaming Ltd (CVE:MTA) (OTCMKTS:MTAFF) is getting in on St Barbara Ltd’s Fifteen Mile Stream project, with the company spending C$2 million on a 3% net smelter return (NSR) royalty for the Nova Scotia gold mining project.
The payment, to a third party, will be divided into C$500,000 up front and another C$1.5 million once the royalty payer exercises its buy-back right to purchase two thirds of the royalty for a period of five years.
The royalty encompasses six claims which comprise the western half of the Plenty Zone and portions of the Seloam Brook prospect. The Plenty Zone, along with the Hudson and Egerton-McClean, constitute the Fifteen Mile Stream project.
READ: Metalla Royalty and Streaming provides portfolio update
"The Plenty Zone royalty is a great addition to the portfolio,” said Metalla CEO Brett Heath. “It completes our royalty exposure over the entire Fifteen Mile Stream project and adds highly prospective exploration ground along strike to the east and south of the Plenty Zone."
Fifteen Mile Stream was acquired by St Barbara when it bought Atlantic Gold on July 19. A press release from Atlantic Gold on March 13 reported an increase of 47%, or 216,000 ounces, after drilling 35,710 meters for a total of 677,000 ounces of contained gold.
Metalla also announced today that it has drawn down C$7 million via its C$12 million convertible loan facility with Beedle Investment Limited. The group said the money will go toward repaying C$2 million in shareholder loans and funding future acquisitions.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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